Evaluation and assessing probability of management risk, Financial Management

Evaluation:

Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process would determine the probability of the particular event occurring against the impact the event would have on the business if the event were to occur.

Assessing Probability:

 When assessing probability of particular events occurring, a useful basis is the classification of probability into categories. 

A method of doing would be as follows:

Level

Descriptor

Description

1

Rare

May occur only in exceptional circumstances

2

Unlikely

Could occur at some time

3

Possible

Might occur at some time

4

Likely

Will probably occur at some time

5

Almost Certain

Is expected to occur in most circumstances


Posted Date: 10/1/2012 4:07:49 AM | Location : United States







Related Discussions:- Evaluation and assessing probability of management risk, Assignment Help, Ask Question on Evaluation and assessing probability of management risk, Get Answer, Expert's Help, Evaluation and assessing probability of management risk Discussions

Write discussion on Evaluation and assessing probability of management risk
Your posts are moderated
Related Questions
The Manager or Management Company The firm sponsoring the Fund could often structure it as a management company. Its primary responsibility is to determine investment strategie

Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as which portion of the profits is to be distributed as dividen

Explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of complete businesses.

Q. Explain Financial Management in brief? In the management of business firms, there are various well known functional areas such as Production Management, Materials Management

Second-Round Financing This is the introduction of further funding through original investors or new investors to enable a new organization to deal with finance growth or unexp

What are some of the factors which common stockholders consider while deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Comm

Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th

Options Traded on Legal and General August 14  2009 Share   Price         Exercise      Price    Calls       Puts                                 Sep        Dec        Mar

Managerial Finance Functions Need skilful planning, control and execution of the financial activities. There are four significant managerial finance functions. These are as sho

QUESTION An audit team is currently engaged in planning the audit of the financial statements of E Limited as at 30 June 2007. This was the first accounting period during which